In today’s fast-paced business world, there is immense pressure for businesses to grow fast. It is super exciting, but growing fast requires perfect utilization of resources and time – which is not that easy all the time. To tackle that, and to make sure both stress and cost levels are manageable, businesses of all types are outsourcing their non-core operations.
Smart companies are outsourcing their back office operations to save:
To save costs, for example, hire team members off-shore. An entry-level graphic designer in the US will charge you $30/hour at the least, PLUS benefits, insurance, logistics, etc. if the designer is in-house. However, when you outsource, you can easily find similar quality designers in different parts of the world for less than $10/hour. In addition, if you hire an agency to get the designer for you, you won't have to make any recruitment or management effort at all, because the agency does that for you.
However, getting started with something new is never easy, especially when it comes to outsourcing - a somewhat unconventional way of getting work done. To help you with that, we have prepared this basis FAQ.
What are the start-up costs?
It should be none, really. When you outsource your work to a business, they should take care of the entire recruitment and management process. Eventually, you will either pay for the exact amount of work done (through outcome-based payment model) or make fixed monthly payments for your remote, exclusive team members. There should not be a start-up fee, and you should not pay anything until you start outsourcing your operations.
Do I have to pay taxes and insurance expenses for team members?
No. When you outsource your operations to a business, they’re the ones hiring the team members for you. The remote team members should always be regarded as employees of the service provider, not yours. Therefore, you should have no obligation regarding employee benefits, taxes, insurance, employment laws, etc.
How do I make payments?
You can hire and pay remote teams directly through local channels, or through reputed platforms such as Upwork and Payoneer using your credit card, PayPal, ACH/bank account, and eCheck. Make sure to lay out goals and milestones first in order to decide your payment schedule and timelines.
How do I communicate with my remote team?
In this era of communication everyone should always available for communication through email, skype, google hangouts, slack, etc. You can also choose to create dedicated slack channels for your team members for easier and instant communication.
How do I protect my intellectual property?
Information confidentiality is an extremely important aspect of outsourcing. You can ask the service provider to sign an NDA (non-disclosure agreement) for you, and we highly encourage that you create one for every project you outsource – to anyone. Also, if you hire team members through Upwork, you can be covered by their ToS which contain default non-disclosure terms sufficient for this purpose.
In summary, we can surely say that it’s not a difficult process at all once you get the hang of it. Start with outsourcing small projects – a one-off article for your blog, a social media image for your profile – and see how things turn out. When you feel fully confident about choosing the right people and making the right project plans, then go ahead at full-speed.
If you have more questions, we here at Emrazina Technologies are more than happy to help you out!